Program to Protect Chilean Motorists from Costly Auto RepairsSANTIAGO, Chile--Oct. 8, 2001--Warrantech International, a subsidiary of Warrantech Corporation (OTCBB: WTEC), a leader and innovator in the field of service contracts and extended warranties, and Seguros Cruz del Sur S.A.(Cruz del Sur), the leading Chilean insurance company, today announced the launch of a new program to provide the Chilean market with protection against costly repairs of mechanical breakdowns to vehicles.
The program provides service contract administration for automotive extended warranties in Chile. This is the first program of this nature in South America to provide extended coverage for new and leased vehicles that can be purchased through dealerships, automotive service centers and various financial institutions.
The automotive program offers three types of coverage: Basic, Deluxe and Ultimate protection. Basic coverage includes the motor, transmission, turbo compressor and electrical components. Deluxe coverage extends the basic coverage to include the suspension, steering system, electrical, air conditioning, the radiator and fuel system components. The Ultimate option covers any inoperable part of the automobile.
Also included in all three coverage levels is roadside auto assistance that encompasses recharging batteries, lost keys, towing and expenses incurred due to the interruption of a trip while the car is being repaired. In addition to auto assistance, Warrantech's auto program provides owners with a replacement vehicle, if necessary. All contracts can be transferred to new owners.
Warrantech International's Managing Director, Jorge Joison said, "We have received overwhelming support for our consumer electronic warranty program in Chile. We currently have agreements with leading retailers in Chile that include Falabella, Ripley, La Polar and Radio Shack among others. The automotive program is another step in providing the Chilean market with added value while at the same time achieving our goal of becoming the leading provider of extended service warranties in Latin America."
We have already signed agreements with more than 15 auto dealers, among them Automotriz Daniel Achondo S.A., Automotora Inalco S.A., Automoviles Undurraga Ltda. and Automotora Vitacura.
In the United States, Warrantech has sold more than 150,000 extended service contracts on automobiles and insures all programs with a carrier rated A+ by A.M. Best. The entire extended warranty market in the United States is more than $6.0 billion.
German Pacheco Matus, Corporate Director of Cruz del Sur Insurance Company, which underwrites the program said, "We formed an alliance with Warrantech because we thought it would provide us with tremendous opportunities. The launch of the automotive program reinforces our belief -- it is the first program to be offered in South America of its kind. Other programs exist but they are sponsored by the manufacturers. We are the first to offer extended service contracts through dealers and other institutions."
Warrantech Corporation, headquartered in Euless, Texas, through its subsidiaries, administers and markets service contracts and after-market warranties on automobiles, automotive components, recreational vehicles, appliances, consumer electronics, homes, computer and computer peripherals for retailers, distributors and manufacturers. The company continues to expand its domestic and global penetration, and now provides its services in the United States, Canada, Mexico, Puerto Rico and Latin America. For more information about Warrantech, access www.warrantech.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties include but are not limited to, the effectiveness of cost containment measures and the continuation of current levels of business activity, the impact of competitive products, product demand and market-acceptance risks, reliance on key strategic alliances, fluctuations in operating results and cash flow and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results to differ materially from those expressed in any forward looking statements that are made today.